As banks start lifting rates to tighten their lending to property investors in response to the Australian Prudential Regulation Authority’s crackdown, Westpac has announced changes to its lending to foreign buyers.
Raising interest rates for existing property investors is opportunistic and unfair according to the Property Investment Professionals of Australia.
In keeping with the current climate of responsible property lending, it is about to become harder to buy a block of land or house off the plan.
ANZ economists say they expect interest rates to be cut another further 50 basis points next year to a new record low of 1.5 per cent.
Westpac Bank has signalled it will lift its home loan rate to beef up capital reserves to guard against future financial crises.
Now that the big four banks have all lifted their mortgage rates after Westpac made the first move, it could put the onus on the RBA to again cut their official rate on Melbourne Cup day.
An RBA official says Australian banks have understated the value of investor loans and it justifies the decision from regulators to crack down on investor loans.
The gap between home loan interest rates being offered by the major banks and the rest has effectively doubled according to comparison website Mozo.
In fact, there are many aspects to financing that your bank may not necessarily tell you about. The following are some of the hidden truths your lender is unlikely to tell you about:
Property investors and high net worth individuals are benefitting most from the mortgage price war being waged by lenders at present.
